Stock market investor? Beware! You can lose your money, do not ever make these mistakes
Losing money to fraudsters from stock investment would be terribly shocking. However, you can protect yourself from all sorts of scams.
Surprise! Frauds are not limited just to your mobile phones, or bank accounts, in fact the reach of the scamsters is very wide and they even cover the markets. In the past you would definitely have been made aware of various mistakes that must never be made, including not sharing financial credentials of any form on suspicious portals or call centres as they have the potential of robbing you of your money. But did you know, even your stock investment on Dalal Street can be in danger? Shockingly, it's quite true.
At this point of time, when markets are at booming stage, with the Sensex and Nifty already earmarking over 40,000 and 12,000 levels last month and the upcoming Budget 2019 looking promising, which means markets are seen rising further by experts, the chances of losing money due to a simple error can be heartbreaking.
Losing money to fraudsters from stock investment would be terribly shocking, however, you can protect yourself from all sorts of scams and surprisingly, all that an investor needs to do is practice a little bit of caution.
The National Stock Exchanges (NSE) has already been cautioning investors to be aware about fraud schemes in order to safeguard their investments and gains.
The Nifty 50 index operator on its website says, “NSE is issuing this investor alert to warn investors about leagues/schemes/competitions, etc. (hereinafter referred to as “schemes”) offered by third party or group company/associate of stock broker, which may involve distribution of prize monies.”
Here’s what an investor must be aware of, if he does not want to lose money:
Firstly, you should know that any participation in the mentioned 'scheme' is at investor's own risk and she or he would have to bear the costs and consequences. There are some schemes that are neither approved nor endorsed by official exchanges that find their way into your mailbox or smartphone. One can identify whether such schemes are legitimate by following a simple checklist. In these schemes, there will be no stock exchange dispute resolution mechanism, or investor grievance redressal mechanism which are administered by official stock exchanges. Neither will they have benefits of investors protection under SEBI jurisdiction. Hence, even if you find these schemes alluring and have opted for it, if any risk or loss arises through it, you will be the one to bear the loss.
You can protect yourself by not opting for such schemes even though it may look very appealing. Take note, even banks advise their customers to not open or share financial credentials via SMS, email address, etc. even if they lure you with hefty offers and prizes. That is because, the practice is meant to eliminate your vulnerability towards fraud.
Also, you must avoid sharing confidential and personal trading data with any third party source. You must know, for any stock-related service, you can always talk to your broking house where you have opened a demat account.
Further, it is advisable not to trade on the basis of SMS tips. You must review your own stocks and their business portfolio before making investment. Also, you can prevent unauthorised transactions, by updating your accurate mobile number and email address with your stock brokers. They will communicate every transaction details carried on exchanges via your registered phone number or email address. Hence, ensure everything is updated with your stock broking firm.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.